The much talked about carbon tax will not come into effect Saturday in Manitoba. The Manitoba Government had originally worked toward a target of September 1st installation but that date has been pushed back to at least December 1st. Gasoline prices are expected to rise by about five cents per litre when the tax takes effect.

Rochelle Squires, Minister of Sustainable Development, says Manitoba's proposed cabon tax of 25 dollars per tonne, is half of what the federal government had threatenend to impose if the province did not set up its own plan. She adds when the tax takes effect later this year, all money collected will be returned to Manitobans in the form of tax reductions, with lower income tax, lower sales tax and a lower small business tax.

The federal government set up the carbon tax program to tax pollution and encourage a quicker transition to a greener economy.